July 30, 2015 / 1:45 PM / 3 years ago

Uranium producer Cameco sees 5-10 percent rise in 2015 revenue

(Reuters) - Canada’s Cameco Corp (CCO.TO) (CCJ.N), one of the world’s largest uranium producers, raised its full-year revenue forecast, helped by increased capacity from its purchase of nuclear fuel broker Nukem Energy GmbH in 2013.

The company said it expects 2015 revenue to rise 5-10 percent, up from its previous forecast of a rise of 5 percent.

Cameco, which owns the world’s largest uranium producing mine at McArthur River, Saskatchewan, reiterated its forecast for total uranium output of 25.3-26.3 million pounds in 2015.

In the second quarter ended June 30, Cameco’s uranium sales volume slipped to 7.3 million pounds from 7.4 million pounds a year earlier.

The company’s average realized uranium price rose only 1 percent to $46.57 per pound, and average unit cost of sales rose 14 percent to C$40.71 per pound.

Cameco said the uranium market “continued to be flat” in the second quarter mainly due to an over-supplied market.

On an adjusted basis, the company earned 12 Canadian cents per share during the quarter, missing the average analyst estimate of 20 Canadian cents per share.

The company has been a beneficiary of India’s recent move to limit the legal liability of U.S. suppliers in the event of a nuclear power plant catastrophe.

Cameco secured a deal in April to supply 7.1 million pounds of uranium concentrate to India over the next five years.

The company’s net earnings attributable to its shareholders fell to C$88 million ($68 million), or 22 Canadian cents per share, in the quarter, from C$127 million, or 32 Canadian cents per share, a year earlier.

Revenue rose 12.5 percent to C$565 million.

The company’s Toronto-listed shares were up marginally at C$17.69 in early trading on Thursday.

Reporting by Rod Nickel in Winnipeg, Manitoba and Sneha Banerjee in Bengaluru; Editing by Maju Samuel and Anil D'Silva

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